The Conservative Party unveiled a new "three strikes" policy as they accused Labour of wasting £30 billion on fraud and error in the benefits system since 1997. The figure works out £80 a second.

Theresa May, the shadow Work and Pensions secretary, pledged a tough crackdown on repeat offenders as she said current levels of fraud were "scandalous".

Claimants caught committing benefit fraud once would lose their out-of-work benefits for three months, a second offence would result in a six-month sanction, and a third offence would see the benefits with-held for up to three years.

The Tories said existing Goverment rules which only remove benefits for 13 weeks for those convicted of fraud twice were not robust enough.

The new pledge would apply to those on 'out of work' benefits such as jobseekers’ allowance, incapacity benefit and income support - though vulnerable claimants such as parents would have these benefits reduced rather than cut off altogether.